Profs Ljungqvist and Asker's research on company reinvestments is featured

— August 1, 2013

Excerpt from The Washington Post -- "Today, corporate profits account for 12 percent of GDP, while net investment has shrunk to 4 percent. When Asker, Ljungqvist and Farre-Mensa looked into this anomaly, they unearthed a startling fact: While publicly traded firms devote 3.7 percent of their total assets to investment, comparable privately owned firms devote 6.8 percent. Using a new database that provides more information on more privately held firms than had previously been available, the economists discovered a problem at the heart of this nation's shareholder version of capitalism."